Oil prices are nearing $73 U.S. a barrel supported by growing signs of supply tightness in the U.S. due to Hurricane Ida and as hopes grow for improved U.S.-China trade relations.
About three-quarters (75%) of the U.S. Gulf's offshore oil production, or about 1.4 million barrels per day, has remained halted since late August following Hurricane Ida making landfall in the southern American states.
The price of Brent crude oil rose $1.23 U.S., or 1.7%, to $72.68 U.S., while West Texas Intermediate (WTI) crude oil was at trading at $69.22 U.S., up $1.08 U.S. or 1.6% in premarket trading.
Oil and equity markets got a boost from news of a phone call between U.S. President Joe Biden and Chinese President Xi Jinping. The call raised hopes for warmer political relations and improved global trade.
Brent crude oil is on track to end this week with a small gain and has rallied almost 40% this year, driven by supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and some demand recovery from the global pandemic.
On Thursday (September 9), both oil contracts had fallen more than 1% after China said it would release crude oil reserves via public auction to help ease high feedstock costs for refiners, a move described by analysts as a first for the Asian nation.
